ENERGY STAR® Distribution Transformers Launch

Webinar

January 14, 2014

Verena Radulovic U.S. Environmental Protection Agency

Webinar Details

• Webinar slides and related materials will be available on the Transformers Web page:

– www.energystar.gov/newspecs

– Follow link to “Version 1.0 is in Development” under “Transformers”

• Audio provided via teleconference:

– Phone lines will remain open during discussion

– Please mute line unless speaking

– Press *6 to mute and *6 to un-mute your line

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Call in: +1 (877) 423-6338 (U.S.) +1 (571) 281-2578 (International) Code: 773366#

Introductions

Verena Radulovic U.S. Environmental Protection Agency

Matt Malinowski ICF International

Emmy Phelan ICF International

Doug Frazee ICF International

Mahesh Sampat EMS Consulting

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Webinar Agenda

Time Topic

1:00–1:30 Introduction

1:30–1:45 Transformers Energy Savings Opportunity

1:45–2:00 Definitions, Scope, General Requirements

2:00–2:30 Qualification Criteria

2:30–2:45 Test Method

2:45–3:00 Open Discussion, Next Steps

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Established in 1992

Voluntary climate protection partnership with the U.S. Environmental Protection Agency (EPA)

Strategic approach to energy management, promoting energy efficient products and practices

Tools and resources to help save money and protect the environment

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For more than 20 years, EPA’s ENERGY STAR program has identified the most energy-efficient products, buildings, plants, and new homes – all based on the latest government-backed standards.

Today, every ENERGY STAR label is verified by a rigorous third-party certification process.

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To date,

the ENERGY STAR

program has:

• Prevented 2 billion metric tons

of greenhouse gas emissions

• Saved $300 billion on utility

bills

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ENERGY STAR = Energy Efficiency ENERGY STAR has become synonymous with energy

efficiency.

ENERGY STAR is also the most comprehensive resource available for proven energy efficiency guidance.

At energystar.gov:

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Reducing the complexity of energy efficiency to a simple choice.

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Lighting CFLs SSL

Integral LED lamps Residential light

fixtures

Home Envelope Roof products

Windows/Doors

Heating & Cooling

Central AC Heat pumps

Boilers Furnaces

Ceiling fans Room AC

Ventilating fans Water Heaters

Office Equipment Computers* Monitors* Printers* Copiers*

Scanners* Fax machines* Multi-function

Devices* Servers*

UPS

Commercial

Food Service Dishwashers Refrigerators

Freezers Ice Machines

Fryers Steamers

Hot Cabinets Griddles Ovens

Vending machines

Appliances Clothes washers

Dishwashers Refrigerators

Dehumidifiers Air cleaners

Water coolers

Home Electronics

Battery chargers Cordless phones

TV Set Top boxes Home audio

* = Covered by EU agreement

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Greenhouse savings by product category

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• Consume less energy • Reduced kWh – reduced CO2

emissions

• Equivalent or better quality

• Annual and life cycle cost savings

• Publicly demonstrate commitment to

environment

• Third-party certification procedures

bolster the integrity of the program and

ensure energy-efficient performance

Benefits of an ENERGY STAR certified product

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Specifications are updated in

response to market changes:

– High market share

– Change in Federal

minimum efficiency

standards

– Availability, performance,

or quality concerns

– Advancements in

technology

– Changes in test

procedures

Maintaining Relevancy

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Assessing New Products for ENERGY STAR

EPA considers a set of well-tested program principles to: • Ensure that product categories proposed for inclusion in the ENERGY

STAR portfolio will yield significant energy savings on a national basis. • Pursue products where product energy consumption and performance

can be measured and verified with testing.

• Propose eligibility criteria that maintain product performance such that performance is not traded for efficiency.

• Enable purchasers to recover their investments in greater efficiency within a reasonable period of time and such that more than one manufacturer can meet them.

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Product Qualification to Data Submittal

Laboratory: Accredited

ENERGY STAR Partner

Laboratory: CB Witnessed/

Supervised

Certification Body (CB)

EPA ENERGY STAR

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Certified Product Lists

• Updated daily

• Custom filters and embed options for retailers, partners, media

• Export options including Excel, .csv, APIs

• One portal where stakeholders access certified products*

data.energystar.gov *Excludes Windows and Non-AHRI CAC/ASHPs

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ENERGY STAR Commercial Products

Specifications:

• Commercial Food Service products

• Data Centers

Outreach/Marketing:

• Low Carbon IT campaign

Testing and Verification:

• Appropriate for commercial products, varies from consumer-

facing programmatic approach.

Webinar Agenda

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Time Topic

1:00–1:30 Introduction

1:30–1:45 Transformers Energy Savings Opportunity

1:45–2:00 Definitions, Scope, General Requirements

2:00–2:30 Qualification Criteria

2:30–2:45 Test Method

2:45–3:00 Open Discussion, Next Steps

Distribution Transformers

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1998 ENERGY STAR Transformers program in effect

2007 DOE Federal Standard for low voltage dry-type transformers in effect/ENERGY STAR program was sunset

2010 DOE Federal Standard for medium voltage dry-type and liquid-immersed transformers in effect

2014

2015

ENERGY STAR scopes Distribution Transformers and launches framework for liquid immersed distribution transformers. Anticipates developing and finalizing Version 1.0 Specification in 2015.

2016 DOE Revised Standard for low/medium voltage dry-type and liquid-immersed transformers in effect

1998-2007 ENERGY STAR Transformers Program

• Partners performed an economic analysis of total cost of ownership and bought transformers that met the ENERGY STAR key product criteria.

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• The U.S. Department of Energy (DOE) issued Federal Standards for low voltage dry-type transformers in 2007.

• DOE set standards for medium voltage dry-type and liquid-immersed transformers in 2010.

• DOE revised the standards for all three transformer types and these standards will go into effect in 2016.

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DOE Federal Standards

ENERGY STAR Scoping Effort

• In late 2013/early 2014, EPA conducted a Scoping Report for Distribution Transformers to determine the energy and monetary savings potential

– Savings was determined to be significant

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Opportunity for Additional Energy Savings

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• Significant energy savings can be realized on a national basis beyond the 2016 DOE Standards, based on small increases in efficiency.

• For distribution transformers, core and winding efficiency can be improved or the geometric configuration of the transformer altered

– The resulting national savings could grow to approximately 4 to 5 TWh per year if 50% of the stock is replaced

• DOE conducted extensive analysis and devised different trial standard levels (TSLs) for various equipment classes (ECs).

– Energy savings is highly dependent on equipment class

Energy Savings and Sales Forecasts

• DOE-estimated 2009 shipments were based on insights including a general reduction in commercial and industrial market activity.

• The market was forecasted to grow at a steady pace after 2009.

26 Source: U.S. Department Of Energy (DOE), Technical Support Document

Projected Sales: Largest opportunity lies in liquid-

immersed, medium voltage distribution transformers

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Distribution Transformer Equipment Type Units Shipped MVA Capacity Shipped Shipment Value (2009 US$million)

Liquid-immersed, medium-voltage, single-phase 683,726 21,994 714.8

Liquid-immersed, medium-voltage, three-phase 49,739 32,266 786

Dry-type, medium-voltage, single-phase, 20-45 kV BIL 709 23 0.7

Dry-type, medium-voltage, three-phase, 20-45 kV BIL 522 257 6.2

Dry-type, medium-voltage, single-phase, 46-95 kV BIL 546 23 0.8

Dry-type, medium-voltage, three-phase, 46-95 kV BIL 2,074 3,655 98.7

Dry-type, medium-voltage, single-phase, ≥ 96 kV BIL 202 9 0.3

Dry-type, medium-voltage, three-phase, ≥ 96 kV BIL 1,286 2,206 66.2

Total 738,804 60,433 1,673.70$

Source: U.S. Department Of Energy (DOE), Technical Support Document

Example Unit Cost Savings: 50 kVA Liquid-

immersed Medium Voltage

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Total National Energy Savings Example

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Equip. Class Typical Unit

National Energy

Savings at 50% Stock

Replacement (TWh/yr)

EC 1 50 kVA, 1 Phase 0.86

25 kVA, 1 Phase 1.52

EC 2 1500 kVA, 3 Phase 1.64

3x500 kVA, 1 Phase 0.086

Grand Total 4.1

Further discussion of how EPA arrived at national and individual savings potential during discussion of potential criteria

ENERGY STAR Framework & Launch of Version 1.0 Specification Development

• On Dec 9, 2014, EPA launched a Framework Document to invite stakeholders to participate in the development of a Version 1.0 Distribution Transformers specification and outline what a specification would look like.

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Webinar Agenda

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Time Topic

1:00–1:30 Introduction

1:30–1:45 Transformers Energy Savings Opportunity

1:45–2:00 Definitions, Scope

2:00–2:30 Qualification Criteria

2:30–2:45 Test Method

2:45–3:00 Open Discussion, Next Steps

Definitions

• EPA prefers to use industry accepted definitions and aligns with the definitions adopted by DOE in the Code of Federal Regulations, 10 CFR 431.192.

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Should EPA consider any additional definitions?

Proposed Scope • EPA proposes to include liquid-immersed, medium voltage

distribution transformers, that operate between 1 and 36 kV input voltage

• Most sales shipments are for liquid-immersed, medium voltage distribution transformers.

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Distribution Transformer Equipment Type Units Shipped MVA Capacity Shipped Shipment Value (2009 US$million)

Liquid-immersed, medium-voltage, single-phase 683,726 21,994 714.8

Liquid-immersed, medium-voltage, three-phase 49,739 32,266 786

Dry-type, medium-voltage, single-phase, 20-45 kV BIL 709 23 0.7

Dry-type, medium-voltage, three-phase, 20-45 kV BIL 522 257 6.2

Dry-type, medium-voltage, single-phase, 46-95 kV BIL 546 23 0.8

Dry-type, medium-voltage, three-phase, 46-95 kV BIL 2,074 3,655 98.7

Dry-type, medium-voltage, single-phase, ≥ 96 kV BIL 202 9 0.3

Dry-type, medium-voltage, three-phase, ≥ 96 kV BIL 1,286 2,206 66.2

Total 738,804 60,433 1,673.70$

Source: U.S. Department Of Energy (DOE), Technical Support Document

• Liquid-immersed transformers:

– Represent a larger portion of the distribution market

– Efficiency can be increased beyond the 2016 federal standards

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Proposed Scope

Should EPA consider including other sizes and types of distribution transformers, based on their energy savings potential?

Webinar Agenda

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Time Topic

1:00–1:30 Introduction

1:30–1:45 Transformers Energy Savings Opportunity

1:45–2:00 Definitions, Scope

2:00–2:30 Qualification Criteria

2:30–2:45 Test Method

2:45–3:00 Open Discussion, Next Steps

Equipment Classes, Design Lines, Trial Standard

Levels and Efficiency Levels

36 Source: U.S. Department Of Energy (DOE), Technical Support Document

• DOE developed a categorization of distribution transformers based on basic properties and these are called Equipment Classes (ECs).

• DOE then further focused on one or two Design Lines (DLs) at a typical power and voltage as the range in each EC was too large to analyze.

• 5 DLs exist for liquid immersed transformers to better reflect manufacturer selling prices (further categorized from 2 ECs)

• DOE then selected Efficiency Levels (ELs) for each DL

• Finally, DOE grouped the LCC analysis results into Trial Standard Levels (TSLs)

Proposed Criteria

• TSL 4 (in green below) represents the maximum net present value at a 7% discount rate based on DOE’s life-cycle cost assessment

– TSL 4 would achieve cumulative national savings of 4.1 TWh over the 2016 DOE Standard (in yellow)

– Unit savings from TSL 4 would be dependent on equipment class but on average, 3MWh per year

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Source: U.S. Department Of Energy (DOE), "Energy Conservation Program: Energy Conservation Standards for Distribution Transformers Final Rule," 78 FR 23397

Example Annual Unit Energy and Capacity

Cost Savings at TSL 4

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Equip. Class Typical Unit

Cost Increase (2008$)

Unit Energy Savings

(kWh/yr)

First-year Energy

Cost Savings (2008$)

First-year Capacity Cost

Savings (2008$)

Payback Based on First-year

Energy and Capacity Cost

Savings (yr)

EC 1 50 kVA, 1 Phase $435 470 $32 $12 9.8

25 kVA, 1 Phase $234 220 $15 $7 10.8

EC 2

1500 kVA, 3 Phase $4,311 4,936 $367 $167 8.1

3x500 kVA, 1 Phase

$3,410 4,908 $348 $134 7.1

Weighted Average $2,636 3,037 225 101 8.1

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑃𝑎𝑦𝑏𝑎𝑐𝑘

=𝐶𝑜𝑠𝑡 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑜𝑓 𝐼𝑛𝑠𝑡𝑎𝑙𝑙𝑒𝑑 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡

𝐸𝑛𝑒𝑟𝑔𝑦 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 + 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑆𝑎𝑣𝑖𝑛𝑔𝑠

Product Payback Potential

• As electric utilities are the main purchasers of medium voltage transformers, payback calculation includes:

– Energy cost, and

– Avoided cost of extra capacity during peak periods

• Payback estimated at approximately 9-10 years for liquid-immersed distribution transformers, in average product lifespan of 32 years.

– Comparable to payback for other products: 1/3 of useful life

** Understood barriers for utility purchasers:

– Cost savings depends on utility structure and state regulatory environment.

– Budgetary structures often not aligned with TCO approach.

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Total National Energy Savings at TSL 4

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Equip. Class Typical Unit

National Energy

Savings at 50% Stock

Replacement (TWh/yr)

EC 1 50 kVA, 1 Phase 0.86

25 kVA, 1 Phase 1.52

EC 2 1500 kVA, 3 Phase 1.64

3x500 kVA, 1 Phase 0.086

Grand Total 4.1

Proposed Criteria Feedback Request

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• General feedback on the proposed TSL 4 efficiency level. • Should EPA consider including other product characteristics that provide

energy savings opportunities for inclusion in the specification, such as: • ‘Smart’ functionality or ability to communicate and respond to

fluctuations in supply and demand

Webinar Agenda

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Time Topic

1:00–1:30 Introduction

1:30–1:45 Transformers Energy Savings Opportunity

1:45–2:00 Definitions, Scope

2:00–2:30 Qualification Criteria

2:30–2:45 Test Method and Testing

2:45–3:00 Open Discussion, Next Steps

Test Method

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• EPA will use the DOE test procedure outlined in 10

CFR 431.193

• In addition to the load percentages outlined in the DOE test procedure, should distribution transformers also be tested at other load percentages to optimize energy efficiency for specific applications? (Efficiency at other loading points would be determined via the DOE test procedure)

Webinar Agenda

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Time Topic

1:00–1:30 Introduction

1:30–1:45 Transformers Energy Savings Opportunity

1:45–2:00 Definitions, Scope

2:00–2:30 Qualification Criteria

2:30–2:45 Test Method

2:45–3:00 Open Discussion, Next Steps

Open Discussion

• DOE and EPA would now like to open up the line for any general comments from stakeholders.

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Written Comments

• In addition to making verbal comments during today’s call, stakeholders are encouraged to submit written comments to

distributiontransformers@energystar.gov

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Comment Deadline

Wednesday, January 28, 2015

Specification Development Timeline

• EPA is proposing the following specification development timeline:

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Event Date Launch Webinar January 14, 2014

Deadline for Written Comments on

Framework Document January 28, 2015

Draft 1 Specification Issued February/March 2015

Draft 1 Stakeholder In-Person Meeting March/April 2015

Additional Draft Specifications Issued and

Associated Stakeholder Webinars Spring/Summer 2015

Final Specification Issued Fall 2015

Specification Effective Fall 2015

Contact Information

Please send any additional comments to distributiontransformers@energystar.gov or contact:

For questions regarding the specification, you may contact Verena Radulovic at Radulovic.Verena@epa.gov or (202) 343-9845.

Thank you for participating!

48 www.energystar.gov/productdevelopment

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